I think from now on, the behaviour will be "bimodal". Below $500K range, a somewhat disorderly drop, lower $/sqft being covered up by fairly unchanging transaction prices as people get better and more homes for their precious and fewer $. Above $500K is where the fun will be to watch. As the market practically empties out to everyone but cash buyers, there will be quite a scramble for anyone unfortunate enough to sell.
bsrsharma brought up a good point about the "bimodal behavior"
I wonder which will pack more punch:
1. The downward pull on prices from the inability of buyers to move up b/c they cann't sell their old house.
2. The downward push on prices b/c the difficulties of getting non-conforming loans.
